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IBM to control 50 percent of domestic outsourcing market
By siliconindia
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Tuesday, 10 February 2009, 21:25 IST |
10 Comments
Bangalore: At a time when the Indian IT companies are scouting for a small piece of the domestic market, the global software vendor IBM is set to rule over half of India's outsourcing market by 2010. Currently, the company owns a share of 36 percent of the country's $5.6-billion software outsourcing market.
"In terms of revenues, IBM's share will be 50-60 percent already. In terms of the number of contracts, the company should be able to achieve 50 percent share in a year or two," an expert, who helps Indian enterprises plan their IT spend told The Economic Times. The Indian IT giants like TCS, Infosys and Wipro will face difficulty in competing with the software vendor's strengths in offering hardware, software, outsourcing and consulting, as an integrated solution to clients.
The firm remains aggressive in pursuing smaller but strategic deals from Tata Sky and HPCL, though it has not vied the huge outsourcing contracts of firms like Bharti Airtel, Idea Cellular and Vodafone, which are worth between $500 million and $1 billion. While some of these outsourcing contracts are smaller in size when signed, IBM is able to evolve these engagements into bigger, multi-year contracts. For instance, when IBM signed an outsourcing contract with real estate company DLF in March 2007, it was worth $30 million. "Now, the size has almost doubled," said a person familiar with the contract.
